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A theoretical model and a two-stage econometric estimation procedure are proposed for determining the parameters of industry-region-specific cost, input-demand, or other functions using grouped data. The model and estimation procedure are appropriate when only marginal totals or averages are...
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A common assumption implicit in the literature on aggregation error in consumer demand theory is that micro relations are exact. Attention is thus focused solely on the errors introduced when one assumes that a micro relation holds at the macro level. We consider the Almost Ideal Demand System...
Persistent link: https://www.econbiz.de/10005405503
Policy analysis frequently requires estimates of aggregate (or mean) consumer elasticities. However, estimates are often made incorrectly, based on elasticity calculations at mean income. We provide in this paper an overall integrated analytical framework that encompasses these biases and...
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We specify and estimate a model of the demand for electricity and natural gas in commercial buildings using data from the Commercial Building Energy Consumption Survey. Although not observed, declining rate schedules are approximated by a downward sloping function fitted to billing data for...
Persistent link: https://www.econbiz.de/10005038448
This study uses survey data relating to the United States commercial sector to estimate and interpret annual energy demand relationships in which account is taken of energy and non-energy prices, building characteristics, and weather information. It applies the estimated US relationships to the...
Persistent link: https://www.econbiz.de/10005763391
Elasticity values calculated at the macro level are biased as estimates of micro elasticities, and vice versa. We derive convenient expressions for aggregation/disaggregation biases in an Almost Ideal Demand System. Using after-tax data we calculate income distribution parameters for seven...
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